FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
HFM information and reviews
FxPro information and reviews

Truth About Regulated Forex Brokers

28 January 2020

If you are in the trading sector or new to Forex you may well be confused with all the different types of regulation out there.

Why is regulation a good thing?

Put simply there is a drive to help traders minimize their losses by reducing the leverage (amount you can gamble effectively).

So the consensus is that as so many traders, especially beginners, lose, it is a good thing to help them minimise exposure to leverage and ultimately the amount of money you could lose.

So where is the problem (how is it abused)?

As there are now so many jurisdictions and choices to be regulated from, CySec, FCA, BaFin to name a few.

Many brokers become regulated in various areas so they can say they are regulated by various entities and therefore add an air of credibility so they can affiliate themselves with the regulatory bodies on websites and promo material.

Famous regulators

Some of the famous regulators such as CySec, BaFin and the FCA require brokers to have very large compensatory funds and stop brokers from offering high leverage to their clients on their tradeable assets.

The problem is that as a new client, you are only covered by the entity (jurisdiction) that you signed up to.

The reality of broker regulation (how so many are misguided)

The reality is that brokers with many different regulatory entities are very often signing people up into one of their less regulated jurisdictions leaving the new client/trader exposed to lack of investor compensation and also more tricky and complex sign up processes that can leave the client exposed to undue risk and lack of transparency.

Do you need to sign up to highly regulated Forex brokers?

To be honest, this really is up to you. If you seek leverage and protection, then you will not find the leverage that you seek from the well-known regulatory options. This is because they try to protect clients from heavy losses and usually put a stop to offers and giveaways used to lure clients to open an account.

That said, if you are happy to accept a sweetener or gift to start your trading experience and open to high leverage but still want some protection, you do have choices…

A safe broker with flexibility?

4xCube is an example of what is termed an offshore (though not correctly termed) broker. Their trading license is from the Cook Islands and offers €20,000 investor protection fund from the Financial Commission, meaning your money is protected to a sizeable amount.

They also work hard to push very fast executions trades and ensure that their technology is of the highest standard benefiting the traders that work with 4xcube.

Why is technology important?

At 4xCube you get your very own free VPS, Full STP and truly outstanding trading conditions due to continual and significant investment in the best trading technology available.

Very flexible IB plans

4xCube works with a wide range of introducing brokers and truly offers very good options in this situation.


Share: Tweet this or Share on Facebook


XM Receives Award at Finance Magnates Africa Summit
XM Receives Award at Finance Magnates Africa Summit

From May 8th to the 10th our team in South Africa was at the first ever Finance Magnates Summit (FMAS:23). XM was there as Diamond Sponsor, and during the summit, we were honoured with the Best Customer Service in Africa award...

30 May 2023

Five Reasons for Copy Trading: Unlocking Your Financial Potential
Five Reasons for Copy Trading: Unlocking Your Financial Potential

With the social trading sector expected to grow and reach a market size of $3.77 billion by 2028, copy trading, a form of social trading, is fast becoming a popular way for traders to achieve their financial and trading goals...

29 May 2023

TRXUSD now available on OctaFX trading platform
TRXUSD now available on OctaFX trading platform

TRXUSD is a popular high-cap cryptocurrency used on the TRON blockchain platform. With the addition of TRXUSD to our platform, our clients can diversify their investments and take advantage of the potential of this cryptocurrency on the market...

24 May 2023

An Introduction to Copy Trading Platforms and How to Choose One
An Introduction to Copy Trading Platforms and How to Choose One

Investing in financial markets can be both daunting and time consuming, especially for those with limited experience in trading. However, copy trading platforms offer a simple and convenient way...

24 May 2023

Planned optimization of MetaTrader 4 platform
Planned optimization of MetaTrader 4 platform

We would like to inform you that on Saturday, May 20, 2023, from 00:30 to 22:00 EEST, the MetaTrader 4 platform will be temporarily unavailable due to the planned...

22 May 2023

T4Trade: Introduction to CFD Trading
T4Trade: Introduction to CFD Trading

Learn what CFDs are, the advantages and risks of trading CFDs as well as some useful tips to help you find success when trading online...

19 May 2023

Editors' Picks

FXCM information and reviews
MultiBank Group information and reviews
MultiBank Group
RoboForex information and reviews
Libertex information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.